ENTERPRISE SUBMITTING FINANCIAL REPORTS FOR THE YEAR AFTER DECEMBER 31 OF THE CALENDAR YEAR WITHIN WHAT TIME PERIOD WILL NOT BE PENALIZED?

For businesses with fiscal year 2023 coinciding with the calendar year (from January 1 to December 31), the deadline for submitting Financial Statements (FS) attached to the Corporate Income Tax (CIT) finalization dossier is for tax authorities is April 1, 2024 (because March 31, 2024 is a Sunday). So, how long does it take for an Enterprise to submit its annual financial statements after December 31 of the calendar year without being fined? Let’s find out with Pham Consult through today’s article!

How long does it take for an enterprise to submit its annual financial statements after December 31 of the calendar year without being fined?

 

Annual financial statements of enterprises are prescribed in Clause 3, Article 29 of the 2015 Accounting Law as follows:

Financial reports of accounting units

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1. d) The financial report must have the signatures of the preparer, chief accountant and legal representative of the accounting unit. The person who signs the financial report is responsible for the content of the report.
2. The annual financial report of the accounting unit must be submitted to the competent state agency within 90 days from the end of the annual accounting period according to the provisions of law.
3. The Ministry of Finance provides detailed regulations on financial reporting for each field of activity; Responsibilities, subjects, preparation period, preparation method, submission deadline, place to receive reports and disclosure of financial reports.

At the same time, based on Clause 1, Article 12 of the 2015 Accounting Law, it is stipulated as follows:

Accounting period

1. Accounting periods include annual accounting periods, quarterly accounting periods, and monthly accounting periods and are specified as follows:
2. a) The annual accounting period is 12 months, from the beginning of January 1 to the end of December 31 of the calendar year. Accounting units with specific organizational and operational characteristics may choose an annual accounting period of 12 full months according to the calendar year, starting from the first day of the first month of this quarter to the end of the last day of the last month of the previous quarter of the following year. and must notify the financial and tax authorities;

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According to regulations, the annual financial statements of the accounting unit must be submitted to the competent state agency within 90 days from the end of the annual accounting period according to the provisions of law.

The annual accounting period is 12 months, from the beginning of January 1 to the end of December 31 of the calendar year.

In case an accounting unit has specific organizational and operational characteristics, the annual accounting period may be 12 full months according to the calendar year, starting from the first day of the first month of this quarter to the end of the last day of the last month of the quarter. before next year.

Thus, in case an enterprise chooses an annual accounting period of 12 months, the enterprise must submit its annual financial report to the competent state agency within 90 days from the end of the annual accounting period. .

That is after 3 months (90 days) from December 31 of the calendar year.

Within this time limit, enterprises must submit annual financial reports. If they exceed the deadline, they will be subject to administrative penalties.

 

If an enterprise is late in submitting its annual financial report, how much money will be fined for administrative violations?

Penalties for late submission of annual financial statements are specified in Article 12 of Decree 41/2018/ND-CP as follows:

Penalties for violations of regulations on submission and disclosure of financial reports

1. Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:
2. a) Submitting financial reports to competent state agencies less than 03 months behind the prescribed deadline;
3. b) Publicizing financial statements less than 03 months later than the prescribed deadline.
4. Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:
5. a) Publicizing financial statements with incomplete content as prescribed;
6. b) Submit financial reports to competent state agencies without attaching audit reports for cases where financial statements are required by law to be audited;
7. c) Submit financial reports to competent state agencies 3 months or more behind the prescribed deadline;
8. d) Publicize financial statements without accompanying audit reports in cases where the law requires financial statements to be audited;
9. d) Publicizing financial reports 3 months or more behind the prescribed deadline.

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At the same time, based on Clause 2, Article 6 of Decree 41/2018/ND-CP (amended by Clause 2, Article 5 of Decree 102/2021/ND-CP), it is stipulated as follows:

Fines in the field of accounting and independent auditing

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2. The fine levels specified in Chapter II and Chapter III of this Decree are the fine levels applicable to organizations except for the cases specified in Clause 1, Article 7; Article 8; Article 9; Article 10; Article 11; Article 13; Article 14; Article 15; Article 16; Article 17; Article 19; Clause 1, Clause 3, Article 21; Article 22; Article 23; Article 24; Article 26; Article 33; Article 34; Clause 1, Clause 3, Article 36; Clause 1, Article 38; Clause 2, Clause 3, Article 39; Clause 1, Clause 2, Article 48; Clause 1, Article 57; Clause 1, Clause 2, Article 61; Article 67 is the fine level for individuals. For organizations that commit the same violation, the fine is 2 times the fine for individuals.

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Thus, according to regulations, in cases where enterprises are late in submitting annual financial reports, they may be subject to administrative penalties at the following levels:

(1) In case the annual financial report is submitted to a competent state agency less than 03 months behind the prescribed deadline, a fine of from 5,000,000 VND to 10,000,000 VND may be imposed;

(2) In case of submitting annual financial reports to competent state agencies 3 months or more behind the prescribed deadline, a fine of from 10,000,000 VND to 20,000,000 VND may be imposed.

What is the statute of limitations for sanctioning administrative violations for late submission of annual financial statements of enterprises?

The statute of limitations for sanctioning administrative violations is specified in Clause 2, Article 3, Decree 41/2018/ND-CP (amended by Clause 1, Article 5, Decree 102/2021/ND-CP) as follows:

Statute of limitations for sanctioning administrative violations

1. The statute of limitations for sanctioning administrative violations in the field of accounting is 2 years.
2. The statute of limitations for sanctioning administrative violations in the field of independent auditing is 1 year.
3. The time to calculate the statute of limitations for sanctioning administrative violations in the field of accounting and independent auditing is prescribed as follows:
4. a) For administrative violations that have ended, the statute of limitations is calculated from the time the violation ended;

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Thus, according to regulations, the statute of limitations for sanctioning administrative violations for late submission of annual financial statements of enterprises is 2 years.

Through the article on Pham Consult, we have learned more about new information with you. We hope this sharing will help your work.